Siemens Sales Growth Forecast Lowered

ZURICH (Reuters) – Siemens will post lower-than-expected full-year sales growth, according to Chief Financial Officer Ralf Thomas, in an interview published on Friday. Profits are not expected to be harmed, and dividends may rise.

The German industrial group stated in its previous results on August 8 that it anticipated full-year comparable revenue growth of 4% to 8%, likely leaning towards the lower end.

“In terms of sales growth, the trend is not towards 4%, but towards 3%,” Thomas told the German newspaper Boersen-Zeitung.

Thomas stated that profitability remains “clearly at the level we announced,” as Siemens prepares to report its full-year results on November 14.

Siemens is targeting a full-year earnings per share within the range of 10.40 euros to 11.00 euros ($11.63-$12.30).

Despite the overall weak economic situation impacting Siemens, Thomas indicated that the company would “probably” raise its dividend. The manufacturer of industrial software and trains is particularly affected by weak demand for factory automation in China, with Italy and Germany also facing challenges.

“Automation really has to stretch itself to achieve its goals,” Thomas remarked, noting that the first half of the next financial year will pose significant challenges.

Thomas acknowledged that it will take time for China’s recent economic stimulus to have an impact, leading Siemens to focus more on its automation business in the U.S., where demand is increasing.

“We have a lot of good ideas for the U.S.,” Thomas said.

($1 = 0.8940 euros)